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Sep 30
ADT Q3 2025 Earnings Report
ADT reported strong third quarter 2025 results with increased revenue and earnings per share, driven by durable recurring monthly revenue and solid customer retention.
Key Takeaways
ADT delivered a solid performance in the third quarter of 2025, with total revenue increasing by 4% to $1.3 billion and diluted EPS rising to $0.17. The company's recurring monthly revenue grew by 1% to $362 million, supported by strong customer retention and efficient revenue payback. ADT also demonstrated robust cash generation and continued its strategic capital allocation, including share repurchases and debt optimization.
Total revenue increased by 4% year-over-year to $1.298 billion, primarily driven by growth in monitoring and related services and security installation.
GAAP diluted EPS from continuing operations rose by 21% to $0.17, while Adjusted EPS increased by 15% to $0.23.
End-of-period recurring monthly revenue (RMR) grew by 1% to $362 million, highlighting the durability of ADT's business model.
The company maintained solid customer retention with a gross customer revenue attrition rate of 13.0% and a revenue payback period of 2.3 years.
ADT
ADT
ADT Revenue by Segment
Revenue by Segment
Monitoring & Related Services Revenue
CapyFin.comSecurity Installation, Product, & Other Revenue
CapyFin.com Forward Guidance
ADT updated its full-year 2025 guidance, reflecting continued confidence in its financial performance and strategic execution. The company expects total revenue between $5.075 billion and $5.175 billion, and Adjusted EPS between $0.85 and $0.89.
Positive Outlook
- Updated total revenue guidance for 2025 to $5.075 billion - $5.175 billion, indicating a strong outlook.
- Adjusted EBITDA guidance for 2025 updated to $2.665 billion - $2.715 billion, showing expected operational strength.
- Adjusted EPS guidance for 2025 updated to $0.85 - $0.89, reflecting anticipated earnings growth.
- Adjusted Free Cash Flow (including interest rate swaps) guidance maintained at $800 million - $900 million, indicating robust cash generation.
- On track to achieve full-year 2025 guidance metrics, demonstrating consistent performance.
Challenges Ahead
- The company is not providing forward-looking guidance for U.S. GAAP financial measures other than Total Revenue, making a full GAAP comparison difficult.
- Quantitative reconciliation to the most directly comparable GAAP measures for non-GAAP financial guidance is not provided due to estimation difficulties.
- Dependence on future uncertainties and adjusting items could impact actual GAAP financial results.
- Information not currently available about other adjusting items could have a potentially unpredictable and significant impact.
- No specific negative revisions to prior guidance were explicitly stated, but the lack of full GAAP guidance presents a limitation.